ED readies Amazon, Flipkart complaint over alleged FDI-rule breaches
India’s Enforcement Directorate has reportedly found evidence that Amazon and Flipkart influenced preferred sellers’ inventory, pricing and profits, and is preparing a complaint over potential foreign investment law violations.
India’s Enforcement Directorate found evidence alleging Amazon and Flipkart exercised control over preferred sellers’ inventory, pricing and profits, and is preparing a complaint over possible foreign investment law violations. Separate reports cited festive-season user growth and planned temporary hiring.
Why this matters
The action adds regulatory risk as Amazon and Flipkart cut seller fees to reach smaller-city shoppers. Amazon has also urged marketplaces to share fraud data while expanding anti-counterfeit work in India.
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